Social Security (Contributions) (Amendment No. 11) (Jersey) Order 2012

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 25 January 2012:

Decision Reference: MD-S-2012-0007
Decision Summary Title :	DS – Make Order to amend Contributions Order3		Date of Decision Summary:	23 January 2012
Decision Summary Author:	Policy Principal		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	WR - Make Order to amend Contributions Order3		Date of Written Report:	23 January 2012
Written Report Author:	Policy Principal		Written Report : Public or Exempt?	Public
Subject: Social Security (Contributions) (Amendment No. 11) (Jersey) Order 2012.
Decision(s): The Minister made the Social Security (Contributions) (Amendment No. 11) (Jersey) Order 2012.
Reason(s) for Decision: Amendments to various Orders made under the Social Security (Jersey) Law 1974 were required to support and reflect the changes to primary legislation that introduced contributions above the previous earnings limit from 1 January 2012. As part of the agreed Fiscal Strategy, a new contribution rate of 2% is levied on employers and Class 2 contributors in respect of earnings above the previous earnings ceiling and up to £150,000 per annum. Particularly in light of this change, it is important that the treatment of benefits in kind and other forms of remuneration is reviewed and greater clarity provided to assist employers, whilst ensuring equity between employers who provide pay packages of equal value through different means. This work on clarifying definitions is ongoing and will help businesses by making it clear what counts as earnings and what can be disregarded when calculating payments, as well as ensuring that unintended consequences are identified and addressed. This Order formalises transitional arrangements so that, for the first half of 2012, benefits in kind will continue to be taken into account in the same way as they were taken into account in 2011 as part of a Class 1 insured person’s earnings or a Class 2 insured person’s income from self-employment. This will allow for further review and dialogue with business to be undertaken as to possible changes.
Resource Implications: There are no specific financial or manpower implications in respect of this Order. The overall impact of the increased contributions will be a reduction in the States Grant of approximately £7 million in 2012. The Social Security Fund will meet the cost of the required increase in staffing of up to 5FTE for the administration of class 2 contributors and other administration costs.
Action required: Policy Principal to notify the Greffier of the States and the Law Draftsman that the Order has been made so that it may be notified to the States, and forward the signed and sealed Order immediately to the States Greffe for publication and archiving.
Signature:		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):